DMAA

Business Context and Reporting Period

Company: Drugs Made In America Acquisition Corp. (DMAA)

Filing Type: Form 10-Q (Quarterly Report)

Reporting Period: Three months ended March 31, 2026

Business Overview: The Company is a Cayman Islands-incorporated blank check company (SPAC) formed to effect a business combination with one or more businesses, primarily in the pharmaceutical industry. As of the reporting date, the Company had not commenced any operations. All activity relates to formation, the Initial Public Offering (IPO), and identifying a target.

Capital Structure: The Company is a shell company and an emerging growth company. As of May 14, 2026, there were 24,276,913 ordinary shares outstanding.

Key Financial Metrics

Material Changes vs. Prior Period

• Net Income Increase: Net income increased by approximately 57% to $1.97 million, driven primarily by higher interest income earned on the Trust Account ($2.11 million vs. $1.59 million) and a significant reduction in general and administrative expenses ($143k vs. $331k).
• Trust Account Growth: The Trust Account balance increased by approximately $2.11 million due to interest earnings.
• Debt Activity: The Company issued a new $100,000 interim convertible note to BV Advisory Partners, LLC in March 2026. The previous related-party promissory note was fully repaid and expired.
• Shareholder Deficit: Accumulated deficit increased to $(7.38) million due to accretion of redeemable shares to redemption value, partially offset by net income.

Outlook, Risks, and Unusual Items

Management Commentary and Subsequent Events

• Extension of Combination Period: On April 27, 2026, shareholders approved an extension of the deadline to complete a business combination from April 29, 2026, to April 29, 2027. This allows for up to 12 one-month extensions, contingent on the Sponsor depositing $300,000 or $0.04 per share per month.
• Redemptions: In connection with the extension vote, holders of 9,440,230 shares redeemed their shares for approximately $99.3 million ($10.52 per share).
• Merger Agreement: On April 29, 2026, the Company entered into a Definitive Merger Agreement with Power Analytics Global Corp. (PAGC).
• Sponsor Transition: The original Sponsor acknowledged an inability to fulfill financial obligations. A new investor (BV Advisory Partners) has provided an interim loan and is transitioning into a sponsor-like role with economic benefits.

Risks and Contingencies

• Going Concern: The filing states substantial doubt exists regarding the Company's ability to continue as a going concern within one year due to the mandatory liquidation date and lack of operating revenue, unless a business combination is consummated.
• Internal Controls: Management concluded that disclosure controls and procedures were not effective as of March 31, 2026, citing material weaknesses including inadequate segregation of duties and insufficient written policies.
• Geopolitical Risks: The filing highlights risks related to global conflicts (Russia-Ukraine, Middle East) and trade tensions that could impact the ability to complete a business combination.

Investor Verification Checklist

• Merger Status: Verify the current status of the Definitive Merger Agreement with Power Analytics Global Corp. (PAGC) and any conditions precedent to closing.
• Sponsor Default: Confirm the resolution of the original Sponsor's default on the share subscription receivable and the status of the 45,092 shares subject to cancellation.
• Extension Funding: Monitor the Sponsor's ability to fund the monthly extension deposits ($300,000) required to maintain the extended deadline through April 2027.
• Internal Controls: Review subsequent filings for remediation plans regarding the material weaknesses in internal controls over financial reporting.
• Redemption Impact: Assess the impact of the $99.3 million redemption on the remaining Trust Account balance available for the proposed merger.